Transaction Announcement JV Partnership with TUI

Transcription

1 Sunce koncern d.d. Transaction Announcement JV Partnership with TUI UPDATE Joint Venture with TUI AG by: (i) selling 50% of Punta Zlatarac Tučepi d.o.o., (ii) forming new JV Management Company and (iii) acquisition of the Sutivan Land 17 November 2017

2 Important notice Disclaimer This presentation contains a number of statements related to the future development of Transaction and partnership of Sunce koncern d.d. ( Sunce ) with TUI AG ( TUI ). These statements are based both on assumptions and estimates. Although we are convinced that these future-related statements are realistic, we or any involved party cannot guarantee them, for our assumptions involve risks and uncertainties which may give rise to situations in which the actual results differ substantially from the expected ones. Sunce or any involved party does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of these materials. Note Update on already published Transaction Announcement JV Partnership with TUI. Following signs are used to easily navigate the reader through updated version versus previous presentation: NEW DISCLOSURE» Sign used (1) on top of the slides whereas update has been done or (2) on a completely new slide N» Sign used as indication within slide where an update has been done Sunce koncern d.d. 2

3 Content I. Sunce koncern d.d. and TUI Group 3 II. Transaction structure: Key details and steps 6 III. Additional information on TUI BLUE Jadran and Sutivan Land 13

4 I. Sunce koncern d.d. and TUI Group

5 Sunce koncern d.d. and TUI Group at a glance Local Company domiciled in Croatia Global Company domiciled in Germany 859 employees in Croatia employees in 130 countries* Revenues of 42 million EUR* Revenues of 19,5 billion EUR* 760 thousands overnights More than 20 million customers from 31 source markets travelling to 180 destinations* Underlying EBITDA of 13,7 million EUR* Underlying EBITDA of 1,4 billion EUR* 11 owned hotels with beds + 2 under Bluesun management Airport Brač owned by Sunce koncern d.d. Over 300 hotels with beds* Around 150 aircraft* ZSE listed business A FTSE 100 business - 14 cruise ships* Market Capitalisation 101 million EUR** Market Capitalisation 9,2 billion EUR** - About retail shops in Europe* * TUI - Based on 2015/2016 numbers; Sunce koncern based on 2016 numbers ** As 6 th of November Sunce koncern d.d. 5

6 Sunce koncern d.d. and TUI Group partnership Sunce koncern Long standing expertise in hotel operations in Croatia Knowledge of Croatian business and administrative environment Top beachfront hotel locations Insights into local development trends Trusted employer Profitable business model TUI Hotels & Resorts Long-standing successful hotel partnerships Expertise in hotel management & operations with high customer satisfaction Proven track record of hotel growth Successful, well-knwon hotel brands Access to large customer base via own distribution channels» Mutual benefits of JVs based on a robust and trustworthy relationship:» JV partners provide expertise» Require less invested captial on a consolidated basis» Delivering cash through dividend Sunce koncern d.d. 6

7 II. Transaction structure: Key details and steps

8 Transaction details NEW DISCLOSURE Key transaction details Transaction/Target Sutivan Land details N N Description Step 1: The sale by Hoteli Tučepi d.d. to TUI 50% of Punta Zlatarac Tučepi d.o.o. ( Target ) Step 2: Acquisition of the Sutivan Land Step 3: Forming new JV Management Company ( MgtCo ), with Sunce 49% and TUI 51% 32ha plot located on the Island of Brač, Sutivan municipality Sutivan Land acquisition date N Update on Transaction Structure N 1. TUI provided related loan to the Target thus matching outstanding related loans already provided by Sunce. The funds were used to finance acquisition of the Sutivan Land 2. The Target acquired 32ha plot on the Island of Brač in order to develop up to three new TUI branded hotels 3. Loans provided by the Parties will be converted into Equity of the Target Sunce koncern d.d. 8

9 Before Transaction - Organigram Sunce koncern d.d. Sunce koncern d.d. SUKC-R-A 100% 89,6% 80,9% 91,4% 100% Sunce vital d.o.o. Hoteli Brela d.d. Hoteli Zlatni rat d.d. Hoteli Tučepi d.d. Sunce Global d.o.o. Aerodrom Brač d.o.o. 51% 100% Punta Zlatarac Tučepi d.o.o. 11. TUI BLUE Jadran 1. Bluesun hotel Soline 2. Bluesun hotel Marina 3. Bluesun hotel Maestral 4. SENTIDO Bluesun Berulia 5. Bluesun hotel Elaphusa 6. Bluesun hotel Borak 7. Bluesun hotel Bonaca 8. Bluesun hotel Alga 9. Bluesun hotel Afrodita 10. Bluesun hotel Neptun Transaction Target: selling 50% of Punta Zlatarac Tučepi d.o.o. to TUI AG Sunce koncern d.d. 9

10 Transaction structure: Step 1 Step 1: Joint Venture formation through 50% acquisition of Punta Zlatarac Tučepi d.o.o. Sunce koncern d.d. 91,4% Cash out for 50% Punta Zlatarac Tučepi d.o.o. TUI AG Hoteli Tučepi d.d. Before Transaction: 100% After Transaction: 50% Punta Zlatarac Tučepi d.o.o. After Transaction: 50% 100% TUI Blue Jadran TUI AG acquires 50% of Punta Zlatarac Tučepi d.o.o. for an EV of EUR (100%). Punta Zlatarac Tučepi d.o.o. is a 100% subsidiary of Hoteli Tučepi d.d., which is part of Sunce koncern d.d. Punta Zlatarac Tučepi d.o.o. is the owning company of the hotel TUI BLUE Jadran in Tučepi Sunce koncern d.d. 10

11 Transaction structure: Step 2 NEW DISCLOSURE Step 2: TUI AG provides a shareholder loan to the new Joint Venture in order to jointly acquire a 32ha plot on the Island of Brač Sunce koncern d.d. Shareholder loans will be converted to equity at the same amount and conditions by both parities TUI AG 91,4% Hoteli Tučepi d.d. Shareholder Loan already provided - pre-jv foundation Punta Zlatarac Tučepi d.o.o. Shareholder Loan provided by TUI AG Plot acquisiton 100% TUI Blue Jadran Sutivan plot The Joint Venutre Punta Zlatarac Tučepi d.o.o. acquires a 32 ha direct beach access plot on the Island of Brač, Croatia. TUI AG provides shareholder loan with the option to convert the shareholder loan into equity. Hotel Tučepi d.d. has provided shareholder loans to the JV in the same amount. The Joint Venture aims to construct up to 3 new TUI Hotels. 1 With identical conditions (maturity and interest rate) as shareholder loan already provided by Hotel Tučepi d.d Sunce koncern d.d. 11

12 Transaction structure: Step 3 NEW DISCLOSURE Step 3: JV starting to plan construction of up to 3 new hotels, TUI & Sunce (51%/49%) with joint management for all hotels under Punta Zlatarac Tučepi d.o.o. Sunce koncern d.d. Establishing a Management Company in Croatia TUI AG 91,4% Hoteli Tučepi d.d. 49% TUI/Sunce 51% Management Croatia Punta Zlatarac Tučepi d.o.o. 100% TUI BLUE Jadran Sutivan plot New TUI/Sunce Management company becoming Management company for all 4 JV Hotels Hotel 1 Preliminary - Construction of up to three new hotels Hotel 2 N Hotel Sunce koncern d.d. 12

13 After Transaction - Organigram Sunce koncern d.d. NEW DISCLOSURE Sunce koncern d.d. SUKC-R-A 100% 89,6% 80,9% 91,4% 100% 49% Sunce vital d.o.o. Hoteli Brela d.d. Hoteli Zlatni rat d.d. Hoteli Tučepi d.d. Sunce Global d.o.o. MgtCo Aerodrom Brač d.o.o. 51% 50% Punta Zlatarac Tučepi d.o.o. 11. TUI BLUE Jadran 12. Hotel Hotel Hotel 3 N 1. Bluesun hotel Soline 2. Bluesun hotel Marina 3. Bluesun hotel Maestral 4. SENTIDO Bluesun Berulia 5. Bluesun hotel Elaphusa 6. Bluesun hotel Borak 7. Bluesun hotel Bonaca 8. Bluesun hotel Alga 9. Bluesun hotel Afrodita 10. Bluesun hotel Neptun Sunce koncern d.d. 13

14 III. Additional information on TUI BLUE Jadran

15 Hotel TUI BLUE Jadran Hotel TUI BLUE Jadran Successful opening as 1st TUI BLUE in Croatia under Franchise agreement on 1st July 2017 TUI BLUE Jadran 4.5* Location Airport distance Tučepi, Croatia SPU: 85 km (01:30h) Opening 01 st of July 2017 # Rooms 161 (371 Beds) Facilities 3 restaurants, 3 bars 2 outdoor pools, exclusive swim-up pool BLUEfit Park, Fitness room and various sports courts Sauna, steam bath, 3 treatment rooms and a relaxation room Target Group Couples, Families Owner Punta Zlatarac Tučepi d.o.o Sunce koncern d.d. 15

16 Sutivan plot NEW DISCLOSURE Sutivan plot on Brač Island: 32ha of rare direct beach access land with two lagoons Sutivan Project on Brač Island Location Airport distance Beach Plot Development Brač Island, Croatia SPU: 50 km BWK (Brač) 35 km 2 beaches 32 ha Up to 3 new hotels Potential Brands Yet to be determined Sunce koncern d.d. 16